On the cusp of Missouri’s sports betting market debut on December 1, 2025, Underdog, an emerging player in the sports betting industry, has unexpectedly withdrawn its license application. This move reduces Missouri’s roster of approved online sportsbooks from nine to eight, as confirmed by the Missouri Gaming Commission (MGC).
Underdog’s decision to step back not only disrupts its own market entry plan but also nullifies its previously publicized partnership with the Kansas City Royals. This partnership was seen as a strategic move, allowing Underdog to participate in a revenue-sharing operation that would have tied them closely to the Royals.
The sudden withdrawal is a surprise for many in the industry. Initially focused on daily fantasy sports, Underdog was quick to pivot to the sports betting scene when Missouri opened its doors to license applications. Having already established a foothold in Missouri through its daily fantasy sports (DFS) offerings, the company seemed poised for a seamless transition into the state’s burgeoning sports betting market.
In preparation for its entry, Underdog not only secured a partnership with the Royals but also entered into a multi-year marketing agreement with the St. Louis Blues, an NHL team. This deal granted Underdog access to valuable marketing assets, including the team’s video content and intellectual property, which would have been instrumental in fan engagement efforts.
Despite these significant marketing investments and strategic alliances, Underdog’s retreat shifts the dynamics of Missouri’s market days before its official opening. Speculation now swirls around whether Underdog’s exit signals a broader strategic shift towards less regulated prediction markets.
The Missouri Gaming Commission’s Executive Director, Mike Leara, emphasized that Underdog’s pivot to prediction markets could reflect a desire to circumvent the regulatory and tax obligations associated with traditional sports betting. “Underdog has decided to go to that market,” Leara remarked, highlighting the appeal of fewer compliance requirements and the absence of state-level taxes.
Since September, Underdog has been broadening its reach in prediction markets, notably through a partnership with Crypto.com, targeting states where sports betting remains illegal. Although Missouri was not initially part of this expansion, it has now been added to the list of states where Underdog offers event contracts, indicating a strategic shift towards these markets.
This change not only frees Underdog from the revenue-sharing commitments with the Kansas City Royals but also bypasses Missouri’s 10% sports betting tax. As Underdog shifts its focus, Missouri will proceed with its online sports betting launch with eight other operators, including well-known names such as bet365, BetMGM, Caesars, Circa Sports, DraftKings, Fanatics, FanDuel, and theScore Bet.
While Missouri’s market prepares for its imminent launch, Underdog continues to expand beyond traditional sports betting, strengthening its presence in prediction markets across nearly two dozen states. At the same time, it sustains its daily fantasy sports operations in 41 states and maintains active sports betting activities in North Carolina.
This development brings to light contrasting views regarding the future of sports betting and prediction markets. Some industry analysts argue that prediction markets offer a fresh opportunity to engage with a different segment of the audience, one that is possibly more tech-savvy and open to new forms of wagering. These markets, often linked with cryptocurrency platforms, can attract a younger demographic interested in innovative betting mechanisms.
Conversely, traditional sports betting remains attractive to operators due to its established consumer base and potential for substantial revenue. The structured regulations and tax incentives in legalized markets provide a stable environment for growth, which still appeals to many companies despite the associated compliance costs.
Underdog’s departure from the Missouri market is a reminder of the fluid and rapidly evolving landscape of online wagering. As companies continue to navigate these changes, their strategies will likely reflect a balance between regulatory compliance and the pursuit of new market opportunities. This balance is crucial in an industry where both innovation and adherence to regulatory frameworks are key to long-term success.
As Missouri moves forward with its plans, the absence of Underdog will leave room for other operators to potentially fill the gap. Whether this will lead to increased competition or open opportunities for new alliances remains to be seen. In the meantime, the shift underscores the diverse pathways companies can take in the ever-expanding world of sports and event wagering.
Sarah Thompson is a seasoned writer specializing in casino gaming and online gambling. With over a decade of experience in the industry, Sarah brings in-depth knowledge and a keen eye for detail to her work at CasinoNoDeposits.com. Her expertise lies in uncovering the latest no deposit bonuses and providing comprehensive reviews of online casinos. Passionate about helping players maximize their gaming experience, Sarah combines her analytical skills with a flair for engaging storytelling.
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